Bread Financial Announces $25 Million Increase to 2024 Share Repurchase Program

Rhea-AI Summary

Bread Financial (NYSE: BFH) announced a $25 million increase to its 2024 share repurchase program, expanding the total authorization from $30 million to $55 million through December 31, 2024. With approximately $19 million remaining from the prior program, the total available repurchase authorization now stands at $44 million. The expanded program aims to offset dilution from employee restricted stock units and allows for open market purchases subject to SEC Rule 10b-18, market conditions, and regulatory approvals.

Positive

• Increased share repurchase authorization by $25 million
• Total buyback program expanded to $55 million
• Program helps offset share dilution from employee stock units

Negative

• Share repurchases may reduce available capital for other investments
• Program primarily focuses on offsetting dilution rather than creating new shareholder value

Insights

Financial Analyst

The $25 million increase to Bread Financial's share buyback program, bringing the total to $55 million, represents a strategic move to manage shareholder value. With $19 million remaining from the previous authorization, the combined $44 million available through 2024 is primarily aimed at countering dilution from employee stock compensation rather than signaling a aggressive value return strategy.

The program's size is relatively modest compared to BFH's $2.9 billion market cap, representing approximately 1.5% of the company's market value. This conservative approach aligns with maintaining capital flexibility while addressing basic share count management. The discretionary nature of the program and its anti-dilution focus suggests this is more about maintaining capital structure than indicating strong positive free cash flow or excess capital position.

COLUMBUS, Ohio, Dec. 02, 2024 (GLOBE NEWSWIRE) -- Bread Financial^® Holdings, Inc. (NYSE: BFH), a tech-forward financial services company that provides simple, personalized payment, lending and saving solutions, today announced that its Board of Directors has approved a $25 million increase to its previously-announced 2024 share repurchase program, expanding the authorization from $30 million of common stock to $55 million of common stock through December 31, 2024. The Company had approximately $19 million remaining under its prior share repurchase program as of the date of this release; this increase will bring the total amount of share repurchase authorization to approximately $44 million through December 31, 2024.

As part of Bread Financial’s continued commitment to its stated capital priorities, the amended share repurchase program is designed to offset the impact of dilution associated with issuances of employee restricted stock units.  

The board’s authorization permits the Company to make open market share repurchases from time-to-time through December 31, 2024 in compliance with SEC Rule 10b-18 and subject to market conditions and other factors, including legal and regulatory restrictions and required approvals, up to the aggregate amount authorized by the Board. The repurchase program does not obligate the Company to acquire any specific number of shares and may be suspended or terminated at any time.

About Bread Financial^®  
Bread Financial^® (NYSE: BFH) is a tech-forward financial services company providing simple, personalized payment, lending and saving solutions. The company creates opportunities for its customers and partners through digitally enabled choices that offer ease, empowerment, financial flexibility and exceptional customer experiences. Driven by a digital-first approach, data insights and white-label technology, Bread Financial delivers growth for its partners through a comprehensive suite of payment solutions that includes private label and co-brand credit cards and Bread Pay^® buy now, pay later products. Bread Financial also offers direct-to-consumer products that give customers more access, choice and freedom through its branded Bread Cashback^® American Express^® Credit Card, Bread Rewards™ American Express^® Credit Card and Bread Savings^® products.     

Headquartered in Columbus, Ohio, Bread Financial is powered by its approximately 7,000 global associates and is committed to sustainable business practices. To learn more about Bread Financial, visit breadfinancial.com or follow us on Facebook, LinkedIn, X and Instagram.     

Forward-Looking Statements
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including, among other things, statements regarding our intended share repurchases and the expected impact on share count dilution. We believe that our expectations are based on reasonable assumptions. Forward-looking statements, however, are based only on currently available information and our current beliefs, expectations and assumptions, and are subject to a number of risks and uncertainties that are difficult to predict and, in many cases, beyond our control, including risk and uncertainties described in greater detail under the headings “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the most recently ended fiscal year, which may be updated in Item 1A of, or elsewhere in, our Quarterly Reports on Form 10-Q filed for periods subsequent to such Form 10-K. Our forward-looking statements speak only as of the date made, and we undertake no obligation, other than as required by applicable law, to update or revise any forward-looking statements, whether as a result of new information, subsequent events, anticipated or unanticipated circumstances or otherwise.

Contacts 
Brian Vereb — Investor Relations 
Brian.Vereb@breadfinancial.com 

Susan Haugen — Investor Relations 
Susan.Haugen@BreadFinancial.com
 
Rachel Stultz — Media 
Rachel.Stultz@breadfinancial.com

FAQ

How much did Bread Financial increase its 2024 share repurchase program by?

Bread Financial increased its 2024 share repurchase program by $25 million, from $30 million to $55 million.

What is the total amount available for BFH stock repurchases through December 2024?

The total amount available for stock repurchases is approximately $44 million through December 31, 2024.

What is the main purpose of Bread Financial's expanded share repurchase program?

The main purpose is to offset the impact of dilution associated with issuances of employee restricted stock units.

When does Bread Financial's current share repurchase authorization expire?

The share repurchase authorization expires on December 31, 2024.